Case - Visma Raet

17-02-2023

Context

In May and June, several of our consultants undertook a project for Visma | Raet, a specialist in HR software. Visma | Raet is part of the Norwegian Visma group, a prominent provider of business software across Europe. Their clientele primarily includes sectors such as education, government, and healthcare. In the education and government sectors, software products are often procured through European tenders. This process involves potential clients issuing tenders to which various parties can submit proposals. Ultimately, the potential client selects from the received bids.

Challenge

A combination of altered pricing strategies, acquisitions by private equity funds, and long-term customer contracts had led to increased complexity in the structure of products, proposals, and associated billing methodologies. This complexity resulted in the erosion of value in client packages, difficulties with upselling, and billing issues.

Solution

Visma | Raet lacked clarity on the specific elements constituting their billing methodologies. In collaboration with Visma | Raet, we first identified the different billing methodologies and mapped their frequency. Subsequently, we compared the number of different billing methodologies per client against their revenue.

Our analysis revealed that certain clients exhibited high complexity in their billing methodologies. A complex client was identified by the use of a relatively high number of billing methodologies within their invoicing for purchased products and services. Our recommendation was to simplify the billing processes for clients whose revenue did not justify the number of billing methodologies employed.

Following the project's deliverables, we also provided Visma | Raet with two months of consultancy-as-a-service. During this period, we further worked on implementing aspects of the results achieved. Additionally, we performed revenue calculations based on various hypothetical price indexations for the upcoming year.

Outcome

Through this solution, Visma | Raet gained:

• Insight into the complexity of their billing methodologies
• Recommendations for reducing complexity
• Initiation of the implementation of a new pricing strategy